How to pixelate a photo:

Giving a photo a pixelated effect is really easy to do in Photoshop using the mosaic filter. Note that this is a destructive filter meaning that it will distort the original image. It is recommended that you duplicate any layer you are going to use this filter on and place the filter on the duplicate instead of the original.

1. First open your image in Photoshop. I would immediately duplicate this layer, but it is optional.
2. Next go to Filter > Pixelate > Mosaic…
3. Then decide how much on a pixilation you want by moving the slider or changing the number.
Here are a few different results using various amounts of distortion. This filter gives you that classic 8-bit look. I find it useful as a texture layer. From here you can use blending modes or the opacity bar to combine it with other layers.

Step 1:
Step 2:
Option 2:
Final 1:
Final 2:
Final 3: